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Non current assets, Active programme to find buyer, Present below current…
Non current assets
PPE
INITIALLY: recognise at cost
Cost model
Depreciate over useful life
Profit / loss on disposal in SPL
Revaluation model
Revalue whole class of assets
Depreciate over useful life
Profit / loss on disposal in SPL
Revaluation gains in OCI
Revaluation losses in SPL if no reval surplus
Cost to bring asset to working condition
Grants
Revenue grant: operating costs
Match in SPL with related costs
Capital grants: asset purchases
Deferred income: Record grant as deferred income
Netting off: Deduct grant from COS
Match in SPL with related depreciation
Recognise when reasonable assurance conditions will be complied with & grant will be received
Borrowing costs
Capitalise if directly attributable to qualifying asset
General borrowings: calculate the Weighted average rate
Begin capitalisation: when expenditure borrowing costs and activities have begun
Qualifying asset = one that takes substantial time to get ready
Suspend capitalisation: if development is interrupted
Cease capitalisation: when asset ready for use or sale
Investment property
INITIALLY: recognise at cost
Purchase price + direct costs
Fair value model
No depreciation
Profit / loss on disposal in SPL
Reval gains / losses recorded in SPL
Cost model
Profit / loss on disposal in SPL
Depreciate over useful life
Intangible assets
INITIALLY: Recognise at cost
Cost purchase price + direct cost
Do NOT recognise if internally generated
Cost model
Profit / loss on disposal in SPL
Amortise over useful life
Revaluation model
Profit / loss on disposal in SPL
Revaluation gains in OCI
Amortise over useful life
Only allowed if active market exists
Revaluation losses in SPL if no reval surplus
Development
Capitalise if
Asset can be used or sold
Asset will generate future economic benefits
Intention to complete the asset: for use or sale
Adequate resources available to complete the asset
Completion of asset is technically feasible
Expenditure can be measured reliably
Impairment of losses
Annually for intangibles with indefinite useful life
Indications of impairment
Adverse changes to the environment in which they operate
Asset obsolete, damaged or idle
Decline in market value of asset
value of the entity as whole is less than CA of its net assets
CA > recoverable amount
Normally charge to SPL
charge to OCI if reval surplus exist & excess to SPL
Recoverable amount = higher of
FV - costs to sell
value in use
CGU
Asset can't be reduced below its recoverable amount
Impairment can be reversed (excl goodwill)
is the smallest group of assets that generates cash flow
Asset held for sale
Carrying amount will be recovered from a sale transaction
Must be available for sale in present condition
Measured at LOWER of: CA & FV - costs to sell
Stop depreciation
Sale must be HIGHLY probable
Active programme to find buyer
Present below current assets
Marketed at FV & sale expected within 12 mth